Audit: Companies overbilled NM Corrections Department
SANTA FE, New Mexico — Wednesday, Governor Susana Martinez responded to an audit report released by the State Auditor’s Office, regarding activities that took place between 2007 and 2010 in the New Mexico Corrections Department (NMCD).
The report centered on the activities of a former Facilities Manager, Laurie Chapman, who was indicted by a federal grand jury earlier this year on charges that she steered government contracts to a roofing company in exchange for over $237,000 in bribes. Chapman was fired by the Martinez Administration shortly after the Governor took office.
Governor Martinez issued an executive order on May 20th that disallowed government contracting with companies involved in corrupt activity, and in a separate order, she established the “Task Force on Procurement Reform” to make legislative and administrative recommendations on how to ensure that the procurement process in New Mexico is open and fair.
“This audit report describes dishonest and illegal activities that took place in recent years, where taxpayer dollars were spent improperly for personal gain,” remarked Governor Martinez. “We have taken a number of steps to prevent the same sort of actions from occurring in the future, but this audit report will help to inform our further efforts to root-out government corruption in New Mexico.”
The report identified roughly $47,000 in over-billing and $397,000 in other questionable payments to one particular company, and the Governor intends to work with the Auditor’s Office and other state agencies to try to recover any tax dollars that were improperly sent to this or other companies.
The audit report also identified several areas of concern relating to NMCD internal controls and the State’s procurement process. The Governor’s Office has asked State Auditor Hector Balderas to present the report’s findings at a meeting of the Task Force on Procurement Reform to help the committee identify specific changes that can be made to enhance the legitimacy and fairness of procurement in New Mexico. The NMCD has established firmer internal controls, which are outlined in the department’s response to the audit, as well as increased training for employees on the management and oversight of public money; these controls will be regularly reviewed to ensure they are sufficient, as will the department’s policies, procedures, and processes.
“Working together, we have an important opportunity to learn from the mistakes made in the past to continue our collective efforts to restore confidence and accountability in state government,” concluded Martinez.
